Selectboard Minutes

TOWN OF SHELBURNE SELECTBOARD
MINUTES OF MEETING
MAY 11, 2004

MEMBERS PRESENT: Steve Dates, Chairperson; Jim Dudley, Chris Neme, Lisa Levine, Barbara Francis.

STAFF PRESENT: Paul Bohne, Town Manager; Peter Frankenburg, Financial Officer.

OTHERS PRESENT: Bill Deming, Spencer Potter, Colleen Haag, Dick Reid, Susan Davis (Shelburne News).

EXECUTIVE SESSION

The Board entered Executive Session for the purpose of discussing personnel, litigation, and contract matters where premature knowledge would place the Town at a disadvantage and invited the Town Manager to attend. The Selectboard entered Executive Session at 6:00 p.m. and adjourned at 7:06 p.m.

1. CALL TO ORDER

Mr. Dates, Chairperson, called the meeting to order at 7:07 p.m.

2. APPROVAL OF AGENDA

There were no changes to the agenda.

3. CITIZEN PARTICIPATION

There were no public comments.

4. PUBLIC HEARING – CAPITAL BUDGET AND PROGRAM

Mr. Bohne reviewed that approval of the Capital Budget and Programs is governed by state statute in the Planning Act. The Board had missed the warning period, which was 15 days. A public hearing to adopt the Capital Budget and Program was warned for May 25, 2004. Ms. Levine asked for clarification of the reason for proposing a second fire station and if a new ladder truck would impact the space at the current location. Mr. Bohne explained that the Fire Department was looking for a safer and better location to serve the community on the north end of town. Ms. Levine asked if one of the current fire trucks would be sold when a new ladder truck was purchased. Mr. Bohne explained the issue with current truss construction practices and the need for a ladder truck to gain access to roofs. Mr. Dates said that there were certain situations when the department needed a ladder truck (with a big fire that warranted use of the ladder truck, typically the department would need all the fire vehicles). Mr. Bohne pointed out that there have been no design or cost estimates for a new building. Funding for a ladder truck and a new building would be addressed via impact fees.

5. DISCUSSION OF DYNAMIC OR ROLLING REAPPRAISAL

Mr. Bohne reviewed that a concept to change to a rolling reappraisal process versus a town-wide property tax reappraisal every 10 years has been under discussion for two or three years. A rolling reappraisal would allow the town to appreciate property on an annual basis. Mr. Potter, Shelburne Assessor, explained that the recently completed 2003 property tax reappraisal affected the residents emotionally and financially. The numbers show that sales support the reappraisal and now there is good data for the proposed rolling reappraisal analysis project. Conducting an inspection is not legally required and is costly. The proposed analysis of the Grand List could be done with the current data. The Town currently used computer software which would revalue every property each year. Ms. Francis asked if the analysis could show changes by categories, such as the type of housing or neighborhood. Mr. Potter replied that the analysis could be done by whatever category was requested, however, it was not legal in Vermont to take representative portions of the Grand List and reappraise property. The proposal was to review the entire Grand List each and every year. Mr. Neme asked if there were enough property sales to be able to eliminate skews and “wild cards” from the data. Mr. Potter replied generally there was sufficient data. Market values were subjective and judgment must be made if a sale was good or an aberration. The more data, then the stronger the predictions that can be made. Currently, the Grand List was divided by road, use (residential versus commercial), lakeshore, etc. Mr. Potter said that he was unaware of any other town in Vermont using rolling reappraisal methodologies, but there were entire states that use it every three years. Mr. Potter explained that a lengthy appeal process was expected as a response to the annual reappraisal, which would taper off after two or three years as people became accustomed to the system. The Grand List analysis would take several months of steady work starting April 1, 2004. The data entered into the computer would be used to run a test. There was discussion regarding impacts from the 2003 reappraisal (the most dynamic changes occurred on the lakeshore properties, which saw values doubled over the period from the last reappraisal), Route 7 commercial properties that previously had a higher tax burden than residential (there had been a 45 percent differential between commercial and residential property taxes), and an average increase of 60 percent to the 2003 Grand List post reappraisal. Mr. Dates asked how ‘no sales’ would be handled. Mr. Potter explained that if there were no sales, then assessments would not change until there was market data. There was Act 68 to deal with regarding the 2004 Grand List. A test run on the 2004 Grand List would be run in late fall using 2003 and 2004 sale data. The Grand List was a one day snapshot per year. There may be need to use commercial sales prior to 2003. Sales data from various sources, such as surrounding towns and time frames, could also be used. One other option was to skip a test run and do an actual rolling reappraisal in the 2005 year. It was the consensus of the Board to conduct a test run. In response to a Board question regarding cost for the proposal, Mr. Potter explained he was a contractor with the Town. There was a fixed price of $5,000 for the analysis and test. Another $5,000 would pay for implementation and for any appeal process. Mr. Dates asked that part of the deliverable include cost differences for a contract versus ‘business as usual’, and the cost of an annual reappraisal versus a reappraisal every five years with inspections. Mr. Dudley suggested that a flow chart showing different categories for Board review would be helpful. It was the consensus of the Board to authorize expenditure of $5,000 for a Grand List analysis and rolling reappraisal test run.

6. FINANCING FOR THE RECONSTRUCTION OF THE TENNIS COURTS AT DAVIS PARK

Mr. Dates reviewed that there was some confusion regarding the wording of Article 9 (2004 March Town Meeting). Mr. Dates read the article as warned regarding renovation of the Davis Park tennis and basket ball courts and potential funding via a $150,000 bond. There was no decision to use part, or all, of the Lillian B. Davis Fund to offset some of the expenses of the project. A project bid of $129,000 has been received and it was now a question of how to fund the proposal. Mr. Bohne reviewed that the total value of the Lillian B. Davis gift of Exxon stock was $56,332. The maintenance of the Davis Park was paid through the General Fund. The Davis Fund had generated $2,400 to $2,500 per year, which was used to fund the park in past years. Fencing may be added to the project which would increase the project amount. Ms. Levine asked if it would be more prudent to take long term debt versus the one-year notes. Mr. Bohne replied that it could be done, but the interest rate would be higher. Furthermore, the March Town meeting vote authorized a bond for five years only. Ms. Francis noted that the stock market was low, but reaching a stage where dividends might increase again. Ms. Francis suggested retaining the Lillian B. Davis Fund Mr. Dates suggested inviting past Board members to a Selectboard meeting to gather their input and collective memories regarding budgets. Mr. Dates asked if the interest or growth of the Lillian B. Davis Fund could be applied against a $150,000 bond. Mr. Bohne said that traditionally the Town took an annual note. For the $150,000 bond, one-fifth interest and principle would be paid every year for five years. For the last several years, interest rates have been low. In response to a $13,000 line item for tennis court repairs and drainage, Mr. Frankenburg explained that a $13,000 deficit was carried as a liability on the General Fund. Ms. Haag, Town Clerk, briefly reviewed a history of the Lillian B. Davis Fund, which was a gift from Dunbar Bostwick prior to 1982. Mr. Bostwick gave the Exxon stock gift with nothing in writing. Harry Webb also gave the Town a gift toward the park. It was assumed to be a “handshake” transaction. PUBLIC COMMENTS Mr. Reid asked if the tennis court project also included repairing the parking circle this year. Mr. Bohne replied it was not certain if the parking lot was covered in the project proposal. Mr. Reid asked for clarification regarding the Davis Park lawn mowing, etc. Mr. Bohne replied that maintenance costs outweighed the money from the Lillian B. Davis Fund. Mowing etc. came out of the General Fund maintenance line item. Mr. Reid asked if the berm and skating rink would be groomed and landscaped this summer. Mr. Bohne answered that the intent was to do the skating rink after the tennis court project. The rink improvements could not be paid for out of the $150,000 bond. The Town had a maintenance line item for park maintenance. MOTION by Mr. Dudley, seconded by Ms. Francis, to retain the Lillian B. Davis Fund Exxon stock, and to approve a bond for the Davis Park renovations in an amount not to exceed $150,000, but only to expend what was necessary from the bond. VOTE: unanimous (5-0); motion carried.

7. APPROVAL OF THE BUDGET FOR THE SEWER DEPARTMENT

Mr. Frankenburg narrated an overhead presentation on the proposed Wastewater Department budget, which was a separate Enterprise Fund from the General Fund. A 4.9 percent increase was proposed for a $6.62 per 1000 gallons FY04-05 rate. Mr. Dudley asked about the time table to hire a Public Works Director. Mr. Bohne replied the target was 08/15/04. Currently, there were two employees in the four-person department. Candidate qualifications were being reviewed. Mr. Frankenburg said the sewer budget strategy was to take funds out of the expansion fund. Over the last year the gallon per house rate was based on 120 gallons per bedroom, but was changed to 110 gallons per house. The Route 7 line relocation cost estimate was $300,000-$400,000, but changed to $700,000. Assumptions were the Town could sustain a 5 percent growth rate. MOTION by Mr. Dudley, seconded by Ms. Levine, to approve the draft FY04-05 Wastewater budget as presented, and set a rate of $6.62 per 1000 gallons. VOTE: unanimous (5-0); motion carried.

8. REVIEW AND ACKNOWLEDGEMENT OF THE WATER BUDGET

Mr. Bohne reported that the Water Commission has drafted and approved a Water Budget and rate. Mr. Dudley noted the Water Commission had requested a larger portion of the Telecommunications Water Tower lease fees. The Selectboard has not addressed the issue, which should be a topic for future discussion. Ms. Levine felt the telecommunication rental fees should go to the Town. It was pure happenstance the towers were located on the water tank. Mr. Dates noted that the location was not intended as a long-term occupancy. The telecommunication companies must make a good faith effort to find a permanent location. Mr. Bohne said the companies had three-year leases for location on the water tank. There was further discussion regarding negotiated contracts, neighborhood concerns that included EMF emissions, potential permanent sites or easements for locating telecommunication towers, and legal responsibilities and potential issues at the end of the three-year leases. Mr. Dates suggested inviting the current tenants before the Board to address intentions. Mr. Bohne said staff would draft a letter. Mr. Frankenburg noted that a memo, dated 05/07/04, outlining the Water Department FY04-05 budget was included in the Selectboard packet.

9. APPROVAL OF GRANTING AN EASEMENT TO VERIZON FOR THE PURPOSE OF INSTALLING AN UNDERGROUND CONDUIT ON JUNIPER RIDGE

The Selectboard signed documents approving two easements between the Town and Verizon for the purpose of installing an underground conduit on Juniper Ridge.

10. APPROVAL OF A CAPITAL EQUIPMENT NOTE AT THE CHITTENDEN BANK IN THE AMOUNT OF $74,000 AT 2.1 PERCENT INTEREST FOR THE PURCHASE OF A DUMP TRUCK MOTION by Ms. Francis, seconded by Mr. Neme, to approve the Capital Equipment one year note with the Chittenden Bank in the amount of $74,000 at 2.1 percent interest for the purchase of a dump truck. VOTE: unanimous (5-0); motion carried.

11. APPROVAL OF THE MINUTES OF 04/27/04 MOTION by Mr. Dudley, seconded by Mr. Neme, to approve the minutes of 04/27/04 with the following correction: Page 3, Capital Budget, 2nd sentence - correct the date to read: “May 25, 2004”. VOTE: unanimous (5-0); motion carried.

12. MANAGER’S REPORT Mr. Bohne reported on the following: • A joint Planning Commission/Selectboard meeting was scheduled for Thursday, 06/03/04 regarding policies and policy direction. • The Shelburne Police Department came in 1st and Best in State in an Annual Law Enforcement Challenge regarding safety programs. The department will enter a national competition. The Selectboard congratulated the Police Department. Staff will prepare a press release. • The Town was participating in a 10% Challenge workshop Wednesday, 05/19/04 from 7:00 p.m. to 8:30 p.m. at the Town Center. • The Town chose to conduct a study of the LaPlatte River and funded a Vermont Common School LaPlatte erosion project in lieu of paying a $13,500 fine regarding operational problems associated with Treatment Plant #1.

13. BOARD MEMBER CONCERNS

Mr. Neme reported that he had contacted potential presenters on smart growth as discussed at the Board Retreat. Mr. Neme will send a written request to the Conservation Law Foundation. Mr. Dudley requested Board input/comments regarding Town concerns to be presented at the MPO meetings. Ms. Levine asked if there was funding for the Route 7 sewer line relocation project through the MPO. Mr. Neme asked if paths and trails were topics within the MPO purview. Mr. Dudley replied that he would address those issues. Mr. Bohne reported that the Neighborhood Path and Sidewalk Committee would be coming before the Board regarding revised plans and potential funding. Mr. Neme requested a copy of the Board packet a week in advance of the next meeting. Ms. Francis, Selectboard representative to the Natural Resources and Conservation Committee, said that the committee was working diligently on a Natural Resources Plan. The committee was in communication with surrounding towns as well. Mr. Dates reported that the Chittenden Solid Waste District would present a draft budget at the next Selectboard meeting. Also, VELCO would conduct a 6:00 a.m. balloon floating test along the proposed transmission line route. The balloon test would show the height of the proposed poles.

14. ADJOURNMENT AND EXECUTIVE SESSION

MOTION by Mr. Dudley, seconded by Mr. Neme, to adjourn the regular meeting and enter Executive Session for the purpose of discussing personnel, litigation, and contracts where premature knowledge would place the Town at a disadvantage, and to invite the Town Manager to attend.. VOTE: unanimous (5-0); motion carried. The regular meeting was adjourned and Executive Session convened at 9:35 p.m.
Minutes respectfully submitted by Kathlyn Furr, Recording Secretary.
Accepted,  Stephen B. Dates Chairman

TOWN OF SHELBURNE SPECIAL SELECTBOARD MEETING MAY 27, 2004 MINUTES MEMBERS PRESENT: Steve Dates, Chairperson; Lisa Levine; Barbara Francis; Jim Dudley (by telephone). STAFF PRESENT: Paul Bohne, Town Manager ACQUISITION of LAND and CONSTRUCTION of ATHLETIC FIELDS The Board discussed the time line necessary to hold a special Town Meeting prior to the July 4th weekend. They also discussed the status of the contract with Gregg Beldock to purchase a portion of the Blodgett property and build five athletic fields. Barbara Francis moved to pass a resolution concerning the need for athletic fields and the opportunity to construct fields on the Blodgett property. Lisa Levine seconded the motion which passed. Vote unanimous: 4 in favor; 0 opposed. Barbara Francis moved to authorize the Manager to sign a contract with Gregg Beldock in an amount not to exceed $1,150,000 to secure the property and five athletic fields. Jim Dudley seconded the motion which passed. Vote unanimous: 4 in favor; 0 opposed. Lisa Levine moved to warn a Special Town Meeting to bring the Blodgett Athletic Field project to the voters on June 29, 2004. Barbara Francis seconded the motion which passed. Vote unanimous: 4 in favor; 0 opposed. The meeting was adjourned at 4:10 P.M. Respectfully submitted, Paul W. Bohne III